Thu 24th Aug 2017 - Deltic considers cash offer for Revolution Bars Group Deltic considers cash offer for Revolution Bars Group: Deltic Group, the UK’s largest operator of premium late-night bars and clubs with 57 venues across the UK, has said it is considering a cash offer for Revolution Bars Group. Deltic said while its preference remained a merger with Revolution as it announced on 15 August, it was now evaluating a possible cash offer. It comes after Revolution Bars Group and Stonegate reached agreement on a £101.5m deal. Revolution Bars Group’s directors have recommended a 203p per share cash offer from Stonegate is accepted by shareholders. Deltic said the offer from Stonegate “continued to significantly undervalue Revolution Bars Group”. Deltic stated: “Since the announcement made by Revolution Bars Group on 15 August in response to the possible merger proposal announced by The Deltic Group, in which the board of Revolution commented it did not see any merit in progressing the Deltic possible merger proposal as the board of Revolution believed a combination of Revolution and Deltic was not in the best interest of Revolution shareholders at that time, Deltic has nonetheless been granted due diligence access, which it is currently undertaking with a view to formalising its possible merger proposal including an analysis of synergies. Deltic is today publishing an update of its own audited historic financial performance, which shows the strength of its business with an Ebitda for the year ended February 2017 of £13.3m. Deltic notes the announcement made on 24 August 2017 by Stonegate Pub Company of a firm intention to make an offer for Revolution at a price of 203p per share. Deltic continues to believe this offer significantly undervalues Revolution. Notwithstanding the possible merger proposal outlined by Deltic in its announcement on 15 August 2017 currently remains Deltic’s preferred structure through which to combine the business of Deltic and Revolution thereby capturing the benefit of synergies for Revolution shareholders, Deltic confirms it is also evaluating a possible cash offer for the entire issued and to be issued share capital of Revolution. Deltic will make a further announcement in due course. In the meantime, Deltic emphasises that there can be no certainty that an offer will be made for Revolution nor as to the terms on which any offer may be made.” Revolution Bars Group’s shares have risen 11.71% to 207.75p since this morning’s announcement.